Correlation Between Guosheng Financial and Shandong Mining
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By analyzing existing cross correlation between Guosheng Financial Holding and Shandong Mining Machinery, you can compare the effects of market volatilities on Guosheng Financial and Shandong Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guosheng Financial with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shandong Mining.
Diversification Opportunities for Guosheng Financial and Shandong Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guosheng and Shandong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery and Guosheng Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guosheng Financial Holding are associated (or correlated) with Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shandong Mining go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shandong Mining
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.03 times more return on investment than Shandong Mining. However, Guosheng Financial is 1.03 times more volatile than Shandong Mining Machinery. It trades about 0.05 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.05 per unit of risk. If you would invest 939.00 in Guosheng Financial Holding on September 2, 2024 and sell it today you would earn a total of 341.00 from holding Guosheng Financial Holding or generate 36.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Shandong Mining Machinery
Performance |
| Timeline |
| Guosheng Financial |
| Shandong Mining Machinery |
Guosheng Financial and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shandong Mining
The main advantage of trading using opposite Guosheng Financial and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shandong Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Guosheng Financial vs. Industrial and Commercial | Guosheng Financial vs. China Construction Bank | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Bank of China |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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